<PAGE>
Dreyfus
California
Tax Exempt
Bond Fund, Inc.
Semi-Annual
Report
November 30, 1996
<PAGE>
Dreyfus California Tax Exempt Bond Fund, Inc.
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Letter to Shareholders
Dear Shareholder:
We are pleased to provide you with this report on the Dreyfus California Tax
Exempt Bond Fund, Inc. For its semi-annual reporting period ended November 30,
1996, your Fund produced a total return of 6.60%.* Income dividends exempt from
Federal and State of California personal income taxes of approximately $.363 per
share were paid,** which is equivalent to an annualized tax-free distribution
rate per share of 5.00%. ***
THE ECONOMY
For much of the year, investors were fearful that inflation would accelerate
should tightening labor markets lead to pressure to increase wages and,
ultimately, higher prices. This was of particular concern earlier in the year
because of the robust rate of new job growth at that time. More specifically, it
was expected that signs of any potential upsurge in inflation would cause the
Federal Reserve Board's Open Market Committee (the "Fed") to tighten monetary
policy. However, during the summer, the economy's growth rate slowed by more
than half of its 4.7% growth rate in the second quarter. The pace of job
creation also slowed, reducing the likelihood that the tightening employment
market would lead to inflation-inducing wage increases. About 150,000 jobs per
month over the past three months have been added to the employment rolls
compared to an average rate of over 250,000 during the spring and early summer
months. The unemployment rate has declined all year (the rate is now at 5.2%,
near a seven-year low), yet wage increases have remained under control. The
Employment Cost Index, a broad measure of wage and benefit growth, has risen a
modest 2.8% over the past year, about the same as the year before when the Index
increased 2.7%. Inflation has remained subdued throughout the reporting period.
The Consumer Price Index continues to show an inflation level at an annual rate
of 3%, while the Producer Price Index shows scant evidence of price pressures in
the production pipeline.
With both low unemployment and low inflation, measures of consumer confidence
remain high. The Index of Leading Economic Indicators, an index compiled by the
Conference Board (a private economic research group), has reached record high
levels every month since June. Retail sales show signs of moderate expansion
after having slowed over the summer when consumers paid off more credit card
debt than they borrowed. On the production side of the economy, output from the
nation's factories has slowed somewhat from its pace earlier in the year. With a
capacity utilization rate of under 83%, there appears to be little indication of
any production bottlenecks that could lead to shortages and higher prices.
MARKET ENVIRONMENT
The trading environment for fixed income investments has been dominated
recently by a measure of volatility one would expect to find during periods of
shifting perceptions as to the course of economic growth and the ensuing level
of inflationary pressures. Early on, as attention focused on the tightening of
the labor markets while the economy continued to expand at a quickening pace,
investors became convinced of an imminent tightening of monetary policy by the
Fed. As a result, long-term interest rates were pushed to their highest levels
in more than a year. As subsequent data showed an abatement in the pace of the
economy's rate of growth and the absence of any clear signs of inflationary
pressures market perceptions quickly reversed, sending prices up and interest
rates back down to more comfortable levels. These shifts in investor perceptions
of the economy and the appropriate levels of long-term interest rates occurred
frequently during the early months of the period, establishing a broad trading
range in prices. As the period drew to a close, however, there emerged a sense
of unanimity among market participants that economic growth was continuing at a
moderate rate without significant inflationary pressures. As such, the close of
the period saw some of the best price performance of the entire six months.
<PAGE>
THE PORTFOLIO
In managing your Fund's assets during a period of such volatility a decidedly
conservative posture was maintained. During those periods when perceptions
became more tentative, emphasis was placed on those securities bearing more
muted characteristics of principal volatility and higher levels of tax-free
income. At these times, higher cash reserves were established in order to
further buffer the portfolio from the consequences of a rising interest rate
environment. As perceptions became more constructive and prices advanced,
trading activity sought to extend portfolio duration in order to capitalize on
potential price appreciation. Throughout the entire six-month period, we focused
on those issues bearing higher degrees of creditworthiness and strong
characteristics of protection from redemption prior to maturity.
We appreciate your investment in the Dreyfus California Tax Exempt Bond Fund,
and we want to assure you that we are, at all times, working in the Fund's best
interest.
Very truly yours,
Richard J. Moynihan
Director, Municipal Portfolio Management
The Dreyfus Corporation
December 20, 1996
New York, N.Y.
*Total return includes reinvestment of dividends and any capital gains paid.
**Some income may be subject to the Federal Alternative Minimum Tax (AMT) for
certain shareholders.
***Distribution rate per share is based upon dividends per share paid from net
investment income during the period (annualized), divided by the net asset
value per share at the end of the period.
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<TABLE>
Dreyfus California Tax Exempt Bond Fund, Inc.
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Statement of Investments November 30, 1996 (Unaudited)
Principal
Long-Term Municipal Investments--96.4% Amount Value
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<S> <C> <C>
Alameda County, COP:
7.25%, 12/1/2014 (Insured; BIGI) (Prerefunded 12/1/2000) (a).............. $ 5,980,000 $ 6,765,054
7.25%, 12/1/2015 (Insured; BIGI) (Prerefunded 12/1/2000) (a).............. 4,045,000 4,576,028
Anaheim Public Finance Authority, Revenue,
Tax Allocation 6.45%, 12/28/2018 (Insured; MBIA).......................... 20,000,000 21,893,800
Bay Area Government Association, Tax Allocation Revenue
(California Redevelopment Agency Pool) 6%, 12/15/2024 (Insured; FSA) (b).. 11,500,000 12,033,715
Bellflower, COP, Refunding
(Bellflower Civic Center) 7.20%, 10/1/2019 (Insured; MBIA)................ 1,475,000 1,609,830
Berkeley, Health Facilities Revenue, Refunding
(Alta Bates Medical Center) 6.55%, 12/1/2022 ............................ 17,000,000 17,168,300
Brea Public Finance Authority, Revenue, Tax Allocation (Redevelopment Project):
6.75%, 8/1/2022 (Insured; MBIA) (Prerefunded 8/1/2001) (a)................ 4,625,000 5,205,900
6.75%, 8/1/2022 (Insured; MBIA)........................................... 1,775,000 1,968,315
California:
5.25%, 10/1/2019.......................................................... 15,200,000 14,756,160
Refunding 5.25%, 6/1/2021 (Insured; AMBAC)................................ 22,060,000 21,569,165
Refunding 5.625%, 9/1/2024................................................ 15,650,000 15,836,548
California Department of Veteran Affairs, Home Purchase Revenue 8.30%, 8/1/2019 1,000,000 1,044,460
California Department of Water Resources,
Water System Revenue (Central Valley Project):
5.75%, 12/1/2016........................................................ 9,705,000 9,908,223
5.25%, 12/1/2024........................................................ 9,670,000 9,441,305
California Educational Facilities Authority, Revenue:
(Claremont Colleges Pooled Facilities) 6.375%, 5/1/2022................... 3,655,000 3,841,880
(Refunding, Santa Clara University):
5.75%, 9/1/2021 (Insured; MBIA)......................................... 3,350,000 3,417,101
5.75%, 9/1/2026 (Insured; MBIA)......................................... 6,775,000 6,910,703
California Health Facilities Financing Authority, Revenue:
(Adventist Health System-West):
6.40%, 3/1/2002 (Insured; MBIA)......................................... 1,955,000 2,132,494
6.50%, 3/1/2003 (Insured; MBIA)......................................... 2,140,000 2,336,687
(Catholic Health Facilities) 5%, 7/1/2008 (Insured; AMBAC)................ 4,500,000 4,464,675
(Downey Community Hospital):
5.625%, 5/15/2008....................................................... 2,500,000 2,534,350
5.75%, 5/15/2015........................................................ 5,750,000 5,714,293
(Episcopal Homes Foundation) 7.75%, 7/1/2018.............................. 4,270,000 4,347,842
(Mills-Peninsula Hospital) 7.50%, 1/15/2000 (Prerefunded 1/15/1997) (a)... 800,000 819,864
(Refunding, Children's Hospital) 5.375%, 7/1/2020 (Insured; MBIA)......... 17,205,000 16,910,622
<PAGE>
Dreyfus California Tax Exempt Bond Fund, Inc.
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Statement of Investments (continued) November 30, 1996 (Unaudited)
Principal
Long-Term Municipal Investments (continued) Amount Value
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California Health Facilities Financing Authority, Revenue (continued):
(Saint Joseph's Health System) 6.75%, 7/1/2021 (Prerefunded 7/1/2001) (a). $ 8,500,000 $ 9,511,585
(San Diego Hospital Association) 6.125%, 8/1/2022 (Insured; MBIA)......... 4,250,000 4,431,603
(Stanford University):
6.50%, 11/1/2020 (Prerefunded 11/1/2000) (a)............................ 8,975,000 9,881,924
6.50%, 11/1/2020........................................................ 1,025,000 1,093,521
(Unihealth America) 7.625%, 10/1/2015 (Insured; AMBAC).................... 55,000 59,340
California Housing Finance Agency:
Home Mortage Revenue:
6.30%, 2/1/2008......................................................... 2,760,000 2,877,383
6.35%, 2/1/2009......................................................... 2,935,000 3,048,526
6.40%, 2/1/2010......................................................... 3,100,000 3,233,579
8.20%, 8/1/2017......................................................... 115,000 119,306
8.30%, 8/1/2019......................................................... 140,000 146,020
6.70%, 8/1/2025......................................................... 8,405,000 8,808,104
7.125%, 2/1/2026........................................................ 3,690,000 3,929,924
6.55%, 8/1/2026......................................................... 11,225,000 11,730,462
6.40%, 8/1/2027 (Insured; MBIA)......................................... 20,000,000 20,594,800
7.65%, 8/1/2029......................................................... 11,150,000 11,679,625
MFHR 6.30%, 8/1/2026 (Insured; AMBAC)..................................... 7,150,000 7,345,481
Multi-Unit Rental Housing Revenue 6.85%, 8/1/2015......................... 3,140,000 3,280,264
Single Family Mortgage:
6.25%, 8/1/2014 (Insured; AMBAC)........................................ 3,640,000 3,714,292
6.30%, 8/1/2024......................................................... 8,000,000 8,182,000
6.45%, 8/1/2025......................................................... 15,355,000 15,805,823
California Pollution Control Financing Authority:
PCR:
(Pacific Gas & Electric Co.)
6.35%, 6/1/2009 (Insured; MBIA)....................................... 5,000,000 5,377,550
(Refunding, Atlantic Richfield Project)
5%, 4/1/2008 (LOC; Wachovia Bank of Georgia N.A.) (c)................. 10,000,000 9,905,500
(Refunding, San Diego Gas and Electric) 5.90%, 6/1/2014 (Insured; MBIA)... 41,830,000 45,173,472
(Southern California Edison Co.):
6.40%, 12/1/2024........................................................ 12,600,000 13,193,586
6.40%, 12/1/2024 (Insured; AMBAC)....................................... 4,125,000 4,399,890
SWDR (Browning Ferris Industry) 6.75%, 9/1/2019........................... 3,400,000 3,648,030
California Public Works Board, LR:
(Department of Corrections, California State Prison, Susanville)
5.25%, 6/1/2015 (Insured; FSA).......................................... 5,455,000 5,445,399
<PAGE>
Dreyfus California Tax Exempt Bond Fund, Inc.
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Statement of Investments (continued) November 30, 1996 (Unaudited)
Principal
Long-Term Municipal Investments (continued) Amount Value
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California Public Works Board, LR (continued):
(Department of Corrections, Calipatria State Prison, Imperial County)
6.50%, 9/1/2017 (Insured; MBIA)......................................... $ 10,000,000 $ 11,560,800
(Department of Corrections, Corcoran II)
5.25%, 1/1/2021 (Insured; AMBAC)........................................ 27,405,000 26,763,175
(Department of Corrections, Madera State Prison)
5.50%, 6/1/2015 (Insured; MBIA)......................................... 4,500,000 4,629,465
(Refunding, Various Community College Projects)
5.625%, 3/1/2016 (Insured; AMBAC)....................................... 10,650,000 10,710,705
(Various University of California Projects
6.70%, 10/1/2017 (Prerefunded 10/1/2002) (a,b).......................... 8,000,000 9,100,560
6.375%, 10/1/2019....................................................... 12,775,000 13,619,428
California State University and Colleges, Student Union Revenue, Refunding (Sacramento)
5.625%, 3/1/2021 (Insured; MBIA).......................................... 2,250,000 2,254,995
California State University Foundation, Revenue (Sacramento Auxiliary)
5.375%, 10/1/2027 (Insured; MBIA)......................................... 2,530,000 2,496,047
California Statewide Community Development Authority, Revenue,
COP (Saint Joseph Health System):
Refunding 5.50%, 7/1/2009 (Insured; MBIA)............................... 8,645,000 8,804,414
Refunding 5.50%, 7/1/2010 (Insured; MBIA)............................... 9,115,000 9,220,187
6.50%, 7/1/2015......................................................... 7,000,000 7,583,240
Central California Joint Powers Health Financing Authority, COP, Refunding
(Community Hospitals of Central California Project) 5.25%, 2/1/2013....... 5,750,000 5,414,775
Central Coast Water Authority, Revenue
(State Water Project Regional Facilities):
5%, 10/1/2016 (Insured; AMBAC).......................................... 6,420,000 6,165,832
6.60%, 10/1/2022 (Insured; AMBAC)....................................... 3,800,000 4,318,966
Chico Public Financing Authority, Revenue
(Southeast Chico Redevelopment Project) 6.625%, 4/1/2021 (Insured; FGIC).. 2,000,000 2,164,400
Contra Costa County, COP (Merrithew Memorial Hospital) 6.60%, 11/1/2012...... 10,000,000 10,681,000
Contra Costa Water District, Water Revenue:
5.50%, 10/1/2019 (Insured; MBIA).......................................... 5,000,000 4,951,500
5%, 10/1/2024 (Insured; MBIA)............................................. 14,000,000 13,168,400
Corona Community Facilities District, Special Tax, Refunding:
7.60%, 9/1/2013........................................................... 5,755,000 6,071,410
7.60%, 9/1/2017........................................................... 3,000,000 3,121,470
7.70%, 9/1/2019........................................................... 2,000,000 2,119,140
Dos Palos Public Financing Authority, Local Agency Revenue 7.90%, 10/1/2020.. 1,000,000 846,830
<PAGE>
Dreyfus California Tax Exempt Bond Fund, Inc.
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Statement of Investments (continued) November 30, 1996 (Unaudited)
Principal
Long-Term Municipal Investments (continued) Amount Value
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East Bay Municipal Utilities District, Revenue:
Wastewater Treatment System:
Refunding 5.50%, 6/1/2013 (Insured; AMBAC).............................. $16,900,000 $ 16,683,680
Refunding 5.55%, 6/1/2020 (Insured; AMBAC).............................. 26,500,000 25,821,335
7.20%, 6/1/2020 (Insured; AMBAC) (Prerefunded 6/1/2000) (a)............. 3,325,000 3,716,652
Water System, Refunding:
6%, 6/1/2012 (Insured; MBIA) (b)........................................ 12,100,000 12,722,061
4.75%, 6/1/2021 (Insured; FGIC)......................................... 43,435,000 39,541,052
5%, 6/1/2026 (Insured; FGIC)............................................ 6,000,000 5,635,200
Eldorado County Public Financing Authority, Revenue, Refunding:
5.50%, 2/15/2016 (Insured; FGIC).......................................... 9,000,000 9,002,880
5.50%, 2/15/2021 (Insured; FGIC).......................................... 10,000,000 9,939,500
Emeryville Public Financing Authority, Revenue
(Shellmound Park Redevelopment Project) 6.80%, 5/1/2024................... 2,365,000 2,519,671
Escondido Union High School District:
Zero Coupon, 11/1/2015 (Insured; MBIA).................................... 6,250,000 2,201,938
Zero Coupon, 11/1/2017 (Insured; MBIA).................................... 4,000,000 1,246,800
Fairfield, Water Revenue, Refunding:
5.25%, 4/1/2012 (Insured; AMBAC).......................................... 4,310,000 4,314,784
5.25%, 4/1/2013 (Insured; AMBAC).......................................... 4,535,000 4,517,450
Folsom, Special Tax (Community Facilities District Number 3) 7.80%, 12/1/2015 1,900,000 2,023,956
Folsom Public Financing Authority, Local Agency Revenue
7.90%, 10/1/2019.......................................................... 18,120,000 18,743,872
Fremont Unified School District, Alameda County
5.875%, 8/1/2020 (Insured; MBIA).......................................... 12,750,000 13,140,023
Fresno, Sewer Revenue 5.25%, 9/1/2019 (Insured; AMBAC)....................... 3,850,000 3,831,944
Hesperia Water District, COP, Refunding
(Water Facilities Improvement Project) 7.15%, 6/1/2026 (Insured; FGIC).... 4,500,000 5,086,980
Industry Urban Development Agency, Refunding (Civic Recreational Project):
7.375%, 5/1/2015 (Prerefunded 5/1/1997) (a)............................... 765,000 792,502
7.375%, 5/1/2015.......................................................... 235,000 241,636
Inglewood, HR (Daniel Freeman Hospital, Inc.) 6.75%, 5/1/2013................ 6,300,000 6,764,625
La Verne Community Facilities District, Special Tax
(Koll Business Center) 7.875%, 3/1/2014................................... 3,625,000 3,862,981
Lake Elsinore Public Financing Authority, Revenue:
Local Agency 8%, 10/1/2020................................................ 7,670,000 5,624,411
Tax Allocation (Lake Elsinore Redevelopment Project)
6.25%, 2/1/2019 (Insured; FGIC)......................................... 4,220,000 4,407,621
<PAGE>
Dreyfus California Tax Exempt Bond Fund, Inc.
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Statement of Investments (continued) November 30, 1996 (Unaudited)
Principal
Long-Term Municipal Investments (continued) Amount Value
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Lincoln Unified School Distict, Special Tax, Refunding (Community Facilities
District Number 1) 5.625%, 9/1/2021 (Insured; AMBAC)...................... $ 8,785,000 $ 8,806,611
Loma Linda, HR, Refunding (Loma Linda University Medical Center Project)
7%, 12/1/2015 (Insured; AMBAC)............................................ 12,355,000 13,461,390
Los Angeles Community Redevelopment Agency, Tax Allocation
(Hollywood Redevelopment Project) 6.10%, 7/1/2022 (Insured; MBIA)......... 4,900,000 5,124,910
Los Angeles County, COP:
(Disney Parking Project)
6.50%, 3/1/2023......................................................... 7,440,000 7,637,160
(Edmund D. Edelman Childrens' Court) 6%, 4/1/2012 (Insured; AMBAC)........ 9,000,000 9,414,360
Los Angeles Department of Water and Power,
Waterworks Revenue, Refunding:
5.90%, 5/15/2011 (Insured; FGIC)........................................ 2,190,000 2,323,502
6.40%, 5/15/2028........................................................ 2,435,000 2,570,216
6.375%, 7/1/2034 (Insured; MBIA)........................................ 12,000,000 13,056,480
Los Angeles Harbor Department, Revenue:
6%, 8/1/2012.............................................................. 8,900,000 9,371,255
6.625%, 8/1/2019 (Insured; AMBAC)......................................... 6,000,000 6,546,300
6.625%, 8/1/2025.......................................................... 17,780,000 19,061,582
Los Angeles Municipal Improvement Corp., LR, Refunding
(Central Library Project):
5.375%, 6/1/2011........................................................ 3,725,000 3,699,074
6.30%, 6/1/2016......................................................... 3,500,000 3,651,725
6.30%, 6/1/2018......................................................... 4,250,000 4,434,238
6.35%, 6/1/2020......................................................... 7,700,000 8,047,501
Los Banos Unified School District, COP
5.625%, 8/1/2016 (Insured; MBIA).......................................... 2,585,000 2,600,174
Menlo Park Community Development Agency, Tax Allocation, Refunding
(Las Puglas Community Development Project):
5.375%, 6/1/2016 (Insured; AMBAC)....................................... 6,470,000 6,446,773
5.375%, 6/1/2022 (Insured; AMBAC)....................................... 11,825,000 11,679,434
Metropolitan Water District of Southern California, Waterworks Revenue:
6.75%, 7/1/2018 (Prerefunded 7/1/2001) (a)................................ 4,750,000 5,323,753
Refunding 4.75%, 7/1/2021 (Insured; MBIA)................................. 31,000,000 28,214,960
5%, 7/1/2027 (d).......................................................... 10,000,000 9,354,300
Modesto, Multi-Family Housing Mortage Revenue, Refunding 6.40%, 6/1/2029..... 7,723,000 7,954,458
Mojave Water Agency, Refunding (Improvement District-Morongo Basin)
5.75%, 9/1/2015 (Insured; FGIC)........................................... 3,000,000 3,078,390
<PAGE>
Dreyfus California Tax Exempt Bond Fund, Inc.
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Statement of Investments (continued) November 30, 1996 (Unaudited)
Principal
Long-Term Municipal Investments (continued) Amount Value
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Moreno Valley Unified School District,
Community Facilities District, Special Tax
7.70%, 8/15/2014.......................................................... $ 840,000 $ 823,192
Moulton Niguel Water District (Improvement District Number 6)
7.25%, 4/1/2016 (Insured; AMBAC) (Prerefunded 4/1/2000) (a)............... 5,000,000 5,586,250
Mountain View Shoreline Regional Park Community, Tax Allocation
5.50%, 8/1/2021 (Insured; MBIA)........................................... 5,000,000 4,969,500
Mount Diablo Hospital District, Revenue
6.125%, 12/1/2020 (Insured; AMBAC) (Prerefunded 12/1/2000) (a)............ 5,000,000 5,443,850
Mount Diablo Unified School District, Community Facilities District, Special Tax
7.05%, 8/1/2020 (Insured; FGIC) (Prerefunded 8/1/2000) (a)................ 3,500,000 3,914,470
Northern California Power Agency, Power Revenue:
(Hydroelectric Project) 7%, 7/1/2016 (Insured; AMBAC)
(Prerefunded 1/1/2016) (a) 670,000 812,529
Refunding 7.50%, 7/1/2023 (Insured; AMBAC) (Prerefunded 7/1/2021) (a)..... 375,000 461,186
Northridge Water District, COP, Revenue
5.25%, 2/1/2018 (Insured; AMBAC).......................................... 2,500,000 2,451,300
Orange Cove Irrigation District, Revenue, COP, Refunding (Rehabilitation Project)
5%, 2/1/2017 (Insured; AMBAC)............................................. 7,300,000 6,990,845
Palmdale Elementary School District, Special Tax,
(Community Facilities District number 90):
5.30%, 8/1/2014 (Insured; FSA).......................................... 2,500,000 2,500,400
5.40%, 8/1/2025 (Insured; FSA).......................................... 3,500,000 3,442,075
Palo Alto Unified School District 5.375%, 8/1/2017........................... 6,940,000 6,957,350
Pasadena Community Development Commission, MFHR (Civic Center)
6.45%, 12/1/2021 (Insured; FSA)........................................... 15,000,000 15,405,000
Port of Oakland, Special Facilities Revenue, (Mitsui O.S.K. Lines Ltd.)
6.80%, 1/1/2019 (LOC; Industrial Bank of Japan) (c)....................... 2,000,000 2,121,880
Rancho Cucamonga Redevelopment Agency, Tax Allocation
(Rancho Cucamonga Redevelopment Project):
7.125%, 9/1/2019 (Insured; MBIA)........................................ 2,455,000 2,669,813
6.75%, 9/1/2020 (Insured; MBIA)......................................... 1,665,000 1,794,654
Riverside County Asset Leasing Corp., Leasehold Revenue
(Riverside County Hospital Project) 6.25%, 6/1/2019....................... 7,500,000 7,554,225
Riverside County Community Facilities District, Special Tax:
7.80%, 9/1/2015 (e)....................................................... 6,750,000 2,970,000
8.25%, 9/1/2016........................................................... 4,730,000 4,731,135
Sacramento, COP (Refunding-Public Facilities Project) 6%, 7/1/2012........... 6,000,000 6,155,280
Sacramento Area Flood Control Agency (Capital Assessment District Number 2)
5.375%, 10/1/2025 (Insured; FGIC)......................................... 6,750,000 6,661,778
<PAGE>
Dreyfus California Tax Exempt Bond Fund, Inc.
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Statement of Investments (continued) November 30, 1996 (Unaudited)
Principal
Long-Term Municipal Investments (continued) Amount Value
- ----------------------------------------------------------------------------- --------------- --------------
Sacramento County, Airport System Revenue:
5.90%, 7/1/2024 (Insured; MBIA)........................................... $ 9,650,000 $ 9,840,202
5.75%, Series B, 7/1/2026 (Insured; MBIA)................................. 5,195,000 5,298,225
5.75%, Series D, 7/1/2026 (Insured; MBIA)................................. 10,000,000 10,198,700
Sacramento Municipal Utility District, Electric Revenue......................
5.50%, 8/15/2021 (Insured; AMBAC) (b)..................................... 11,045,000 10,977,515
Saddleback Community College District, COP
7%, 8/1/2019 (Insured; BIGI).............................................. 2,875,000 3,112,073
Salinas Redevelopment Agency, Tax Allocation (Central City Revitalization Project)
5.50%, 11/1/2023 (Insured; FSA)........................................... 4,510,000 4,450,513
San Bernardino County, COP:
(Capital Facilities Project)
6.875%, 8/1/2024........................................................ 5,000,000 6,148,600
(Refunding, Medical Center Financing Project):
5.50%, 8/1/2015 (Insured; MBIA)......................................... 12,790,000 12,766,722
5.50%, 8/1/2022 (Insured; MBIA)......................................... 19,780,000 19,497,344
5.50%, 8/1/2024......................................................... 3,900,000 3,731,637
(West Valley Detention Center)............................................
5.90%, 11/1/2001 (Insured; MBIA)........................................ 1,565,000 1,680,341
San Elijo Joint Powers Authority, Revenue
(San Elijo Water Pollution Control Project)
7%, 3/1/2020 (Insured; FGIC) (Prerefunded 3/1/2000) (a)................... 5,500,000 6,090,755
San Francisco Bay Area Rapid Transportation District, Sales Tax Revenue
5.50%, 7/1/2020 (Insured; FGIC)........................................... 15,330,000 15,238,940
San Francisco City and County, SFMR
(FNMA/GNMA Mortgage Backed Securities Program) 7.45%, 1/1/2024............ 255,000 268,015
San Francisco City and County Airports Commission, International Airport Revenue:
Refunding, 6.10%, 5/1/2003 (Insured; AMBAC)............................... 3,000,000 3,282,000
5.25%, 5/1/2020 (Insured; FGIC)........................................... 6,170,000 6,019,514
5.75%, 5/1/2020 (Insured; FGIC)........................................... 28,005,000 28,216,158
5.625%, 5/1/2021 (Insured; MBIA).......................................... 10,825,000 10,768,927
5.625%, 5/1/2021 (Insured; MBIA) (d)...................................... 10,000,000 9,868,800
5.65%, 5/1/2024 (Insured; FGIC)........................................... 12,900,000 12,954,825
San Francisco City and County Public Utilities Commission, Water Revenue
6.50%, 11/1/2017.......................................................... 3,500,000 3,722,040
San Francisco State Building Authority, LR
(San Francisco Civic Center Complex)
5.25%, 12/1/2021 (Insured; AMBAC) (d)..................................... 16,250,000 15,819,861
San Marcos Public Facilities Authority, Tax Allocation Revenue
6%, 1/1/2006 (Insured; FSA) (Prerefunded 1/1/2002) (a).................... 10,500,000 11,504,534
<PAGE>
Dreyfus California Tax Exempt Bond Fund, Inc.
- -------------------------------------------------------------------------------
Statement of Investments (continued) November 30, 1996 (Unaudited)
Principal
Long-Term Municipal Investments (continued) Amount Value
- ----------------------------------------------------------------------------- --------------- --------------
San Mateo County, COP (Capital Projects Program)
6.50%, 7/1/2017 (Insured; MBIA) (Prerefunded 7/1/2001) (a)................ $ 6,000,000 $ 6,684,120
Santa Barbara, COP, Refunding (Water System Improvement Project)
6.70%, 4/1/2027 (Insured; AMBAC).......................................... 4,000,000 4,430,960
Santa Clara County, COP (Capital Project)
6.25%, 10/1/2016 (Insured; AMBAC)......................................... 10,000,000 10,652,400
Santa Cruz County, COP (Capital Facilities Project)
6.70%, 9/1/2020 (Insured; MBIA)........................................... 5,000,000 5,525,150
Santa Cruz County Public Financing Authority, Revenue, Refunding
7.10%, 9/1/2021 (Insured; MBIA)........................................... 6,500,000 7,093,385
Southern California Rapid Transportation District, COP (Workers Compensation Fund)
6.50%, 7/1/2007 (Insured; MBIA)........................................... 22,900,000 25,046,645
Tracy Area Public Facilities Financing Agency, Special Tax, Refunding:
(Community Facilities District Number 87-1-H)
5.875%, 10/1/2019 (Insured; MBIA)....................................... 18,250,000 18,814,107
(Community Facilities District Number 87-1-G)
5.50%, 10/1/2021 (Insured; MBIA)........................................ 5,250,000 5,217,922
University of California, COP (UCLA Central Chiller/Cogeneration)
6.25%, 11/1/2009 (Prerefunded 11/1/1999) (a).............................. 3,000,000 3,236,459
West Basin Municipal Water District, COP
6.85%, 8/1/2016 (Insured; AMBAC) (Prerefunded 8/1/2000) (a)............... 6,000,000 6,669,959
West Sonoma County Union High School District
5.25%, 8/15/2021 (Insured; FGIC).......................................... 2,705,000 2,644,353
---------------
TOTAL LONG-TERM MUNICIPAL INVESTMENTS
(cost $1,315,794,496)..................................................... $1,375,721,555
===============
Short-Term Municipal Investments--3.6%
- -----------------------------------------------------------------------------
California, RAN, VRDN 3.95% (f) $18,300,000 $ 18,300,000
California Health Facilities Financing Authority, Revenue, VRDN
(Catholic Health Care) 3.35% (f).......................................... 5,500,000 5,500,000
Irvine Ranch Water District, VRDN:
3.90% (LOC; Commerzbank) (c,f)............................................ 14,350,000 14,350,000
3.90% (LOC; Bank of America National Trust and Savings Association) (c,f). 12,600,000 12,600,000
---------------
TOTAL SHORT-TERM MUNICIPAL INVESTMENTS
(cost $50,750,000)........................................................ $ 50,750,000
===============
TOTAL INVESTMENTS--100.0%
(cost $1,366,544,496)..................................................... $1,426,471,555
===============
<PAGE>
</TABLE>
<TABLE>
Dreyfus California Tax Exempt Bond Fund, Inc.
- -------------------------------------------------------------------------
Summary of Abbreviations
- -------------------------------------------------------------------------
<S> <C> <C> <C>
AMBAC American Municipal Bond Assurance Corporation MBIA Municipal Bond Investors Assurance
BIGI Bond Investors Guaranty Insurance Insurance Corporation
COP Certificate of Participation MFHR Multi-Family Housing Revenue
FGIC Financial Guaranty Insurance Company PCR Pollution Control Revenue
FNMA Federal National Mortgage Association RAN Revenue Anticipation Notes
FSA Financial Security Assurance SFMR Single Family Mortgage Revenue
GNMA Government National Mortgage Association SWDR Solid Waste Disposal Revenue
HR Hospital Revenue VRDN Variable Rate Demand Notes
LOC Letter of Credit
LR Lease Revenue
</TABLE>
<TABLE>
Summary of Combined Ratings (Unaudited)
- ------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Fitch (g) or Moody's or Standard & Poor's Percentage of Value
- ------ -------- ---------------- ------------------
AAA Aaa AAA 69.3%
AA Aa AA 11.2
A A A 10.4
BBB Baa BBB 1.9
F1 MIG1/P1 SP1/A1 3.6
Not Rated (h) Not Rated (h) Not Rated (h) 3.6
-------
100.0%
=======
<FN>
Notes to Statement of Investments:
- -----------------------------------------------------------------------
(a) Bonds which are prerefunded are collateralized by U.S. Government securities
which are held in escrow and are used to pay principal and interest on the
municipal issue and to retire the bonds in full at the earliest refunding date.
(b) Wholly held by custodian as collateral for delayed-delivery security.
(c) Secured by letters of credit.
(d) Purchased on a delayed-delivery basis.
(e) Non-income producing security; interest payment in default.
(f) Securities payable on demand. The interest rate, which is subject to change,
is based upon bank prime rates or an index of market interest rates.
(g) Fitch
currently provides creditworthiness information for a limited number of
investments.
(h) Securities which, while not rated by Fitch, Moody's and
Standard & Poor's have been determined by the Manager to be of comparable
quality to those rated securities in which the Fund may invest.
(i) At November
30, 1996, 31.2% of the Fund's net assets are insured by MBIA.
</TABLE>
See notes to financial statements.
<PAGE>
<TABLE>
Dreyfus California Tax Exempt Bond Fund, Inc.
- ------------------------------------------------------------------------
Statement of Assets and Liabilities November 30, 1996 (Unaudited)
Cost Value
--------------- ---------------
<S> <C> <C> <C>
ASSETS: Investments in securities--See Statement of Investments $1,366,544,496 $1,426,471,555
Cash............................................. 2,112,165
Interest receivable.............................. 25,960,036
Receivable for investment securities sold........ 10,758,556
Prepaid expenses................................. 25,488
---------------
1,465,327,800
---------------
LIABILITIES: Due to The Dreyfus Corporation and affiliates.... 792,590
Payable for investment securities purchased...... 34,724,809
Payable for Common Stock redeemed................ 1,185,886
Accrued expenses................................. 169,835
---------------
36,873,120
---------------
NET ASSETS..................................................................... $1,428,454,680
===============
REPRESENTED BY: Paid-in capital.................................. $1,396,690,537
Accumulated undistributed investment income--net.. 193,946
Accumulated net realized gain (loss) on investments (28,356,862)
Accumulated net unrealized appreciation (depreciation)
on investments--Note 3.......................... 59,927,059
---------------
NET ASSETS..................................................................... $1,428,454,680
===============
SHARES OUTSTANDING
(300 million shares of $.01 par value Common Stock authorized)................. 98,193,299
NET ASSET VALUE, offering and redemption price per share....................... $14.55
=======
</TABLE>
See notes to financial statements.
<PAGE>
<TABLE>
Dreyfus California Tax Exempt Bond Fund, Inc.
- --------------------------------------------------------------------------------
Statement of Operations Six Months Ended November 30, 1996 (Unaudited)
INVESTMENT INCOME
<S> <C> <C> <C>
INCOME Interest Income.................................. $41,021,032
EXPENSES: Management fee--Note 2(a)........................ $ 4,195,123
Shareholder servicing costs--Note 2(b)........... 733,747
Custodian fees................................... 50,281
Professional fees................................ 38,898
Directors' fees and expenses--Note 2(c).......... 35,677
Prospectus and shareholders' reports............. 24,831
Registration fees................................ 14,752
Miscellaneous.................................... 106,228
-------------
Total Expenses.............................. 5,199,537
------------
INVESTMENT INCOME--NET.......................................................... 35,821,495
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS--Note 3:
Net realized gain (loss) on investments.......... $ 1,555,440
Net unrealized appreciation (depreciation) on investments 52,762,483
-------------
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS............................ 54,317,923
------------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS.......................... $90,139,418
============
</TABLE>
See notes to financial statements.
<PAGE>
<TABLE>
Dreyfus California Tax Exempt Bond Fund, Inc.
- -------------------------------------------------------------------
Statement of Changes in Net Assets
Six Months Ended
November 30, 1996 Year Ended
(Unaudited) May 31, 1996
-------------------- ---------------
OPERATIONS:
<S> <C> <C>
Investment income--net............................................... $ 35,821,495 $ 78,376,473
Net realized gain (loss) on investments.............................. 1,555,440 5,971,617
Net unrealized appreciation (depreciation) on investments............ 52,762,483 (57,311,024)
---------------- -----------------
Net Increase (Decrease) in Net Assets Resulting from Operations.. 90,139,418 27,037,066
---------------- -----------------
DIVIDENDS TO SHAREHOLDERS FROM:
Investment income--net................................................ (35,627,549) (78,376,473)
---------------- -----------------
CAPITALSTOCK TRANSACTIONS:
Net proceeds from shares sold........................................ 860,248,142 1,244,233,021
Dividends reinvested................................................. 22,342,524 49,530,321
Cost of shares redeemed.............................................. (879,921,659) (1,428,904,541)
---------------- -----------------
Increase (Decrease) in Net Assets from Capital Stock Transactions 2,669,007 (135,141,199)
---------------- -----------------
Total Increase (Decrease) in Net Assets........................ 57,180,876 (186,480,606)
NET ASSETS:
Beginning of Period.................................................. 1,371,273,804 1,557,754,410
---------------- -----------------
End of Period........................................................ $1,428,454,680 $ 1,371,273,804
================ =================
Undistributed investment income--net.................................... $ 193,946 --
---------------- -----------------
Shares Shares
---------------- ------------------
CAPITAL SHARE TRANSACTIONS:
Shares sold.......................................................... 60,519,196 86,863,106
Shares issued for dividends reinvested............................... 1,566,849 3,452,140
Shares redeemed...................................................... (61,872,685) (99,479,542)
---------------- -----------------
Net Increase (Decrease) in Shares Outstanding.................... 213,360 (9,164,296)
================ =================
</TABLE>
See notes to financial statements.
<PAGE>
<TABLE>
Dreyfus California Tax Exempt Bond Fund, Inc.
- -------------------------------------------------------------------------------
Financial Highlights
Contained below is per share operating performance data for a share of Common
Stock outstanding, total investment return, ratios to average net assets and
other supplemental data for each period indicated. This information has been
derived from the Fund's financial statements.
Six Months Ended Year Ended May 31,
November 30, 1996 ------------------------------------------------------
PER SHARE DATA: (Unaudited) 1996 1995 1994 1993 1992
----------- ------- ------- ------- ------- -------
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of period. $14.00 $14.54 $14.59 $15.34 $14.82 $14.66
------- ------- ------- ------- ------- -------
Investment Operations:
Investment income--net............... .36 .77 .82 .84 .89 .93
Net realized and unrealized gain (loss)
on investments.................... .55 (.54) -- (.57) .66 .20
------- ------- ------- ------- ------- -------
Total from Investment Operations..... .91 .23 .82 .27 1.55 1.13
------- ------- ------- ------- ------- -------
Distributions:
Dividends from investment income--net. (.36) (.77) (.82) (.85) (.88) (.93)
Dividends from net realized gain on
investments....................... -- -- (.05) (.17) (.15) (.04)
------- ------- ------- ------- ------- -------
Total Distributions.................. (.36) (.77) (.87) (1.02) (1.03) (.97)
------- ------- ------- ------- ------- -------
Net asset value, end of period....... $14.55 $14.00 $14.54 $14.59 $15.34 $14.82
======= ======= ======= ======= ======= =======
TOTAL INVESTMENT RETURN................. 13.16%(1) 1.58% 5.93% 1.58% 10.89% 7.90%
RATIOS/SUPPLEMENTAL DATA:
Ratio of expenses to average net assets .74%(1) .69% .71% .70% .69% .68%
Ratio of net investment income
to average net assets............. 5.12%(1) 5.37% 5.77% 5.46% 5.88% 6.32%
Portfolio Turnover Rate.............. 35.41%(2) 56.12% 39.85% 28.14% 41.40% 45.58%
Net Assets, end of period
(000's Omitted) $1,428,455 $1,371,274 $1,557,754 $1,658,782 $1,834,956 $1,751,880
<FN>
- -------------------
(1) Annualized.
(2) Not annualized.
</TABLE>
See notes to financial statements.
<PAGE>
Dreyfus California Tax Exempt Bond Fund, Inc.
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS (Unaudited)
NOTE 1--Significant Accounting Policies:
Dreyfus California Tax Exempt Bond Fund, Inc. (the "Fund") is registered
under the Investment Company Act of 1940 ("Act") as a non-diversified open-end
management investment company. The Fund's investment objective is to provide
investors with the maximum amount of current income exempt from Federal and
State of California income taxes as is consistent with the preservation of
capital. The Dreyfus Corporation ("Manager") serves as the Fund's investment
adviser. The Manager is a direct subsidiary of Mellon Bank, N.A. Premier Mutual
Fund Services, Inc. acts as the distributor of the Fund's shares, which are sold
to the public without a sales charge.
The Fund's financial statements are prepared in accordance with generally
accepted accounting principles which may require the use of management estimates
and assumptions. Actual results could differ from those estimates.
(A) PORTFOLIO VALUATION: The Fund's investments are valued each business day
by an independent pricing service ("Service") approved by the Board of
Directors. Investments for which quoted bid prices are readily available and are
representative of the bid side of the market in the judgment of the Service are
valued at the mean between the quoted bid prices (as obtained by the Service
from dealers in such securities) and asked prices (as calculated by the Service
based upon its evaluation of the market for such securities). Other investments
(which constitute a majority of the portfolio securities) are carried at fair
value as determined by the Service, based on methods which include consideration
of: yields or prices of municipal securities of comparable quality, coupon,
maturity and type; indications as to values from dealers; and general market
conditions.
(B) SECURITIES TRANSACTIONS AND INVESTMENT INCOME: Securities transactions
are recorded on a trade date basis. Realized gain and loss from securities
transactions are recorded on the identified cost basis. Interest income,
adjusted for amortization of premiums and original issue discounts on
investments, is earned from settlement date and recognized on the accrual basis.
Securities purchased or sold on a when-issued or delayed-delivery basis may be
settled a month or more after the trade date.
The Fund follows an investment policy of investing primarily in municipal
obligations of one state. Economic changes affecting the state and certain of
its public bodies and municipalities may affect the ability of issuers within
the state to pay interest on, or repay principal of, municipal obligations held
by the Fund.
(C) DIVIDENDS TO SHAREHOLDERS: It is the policy of the Fund to declare
dividends daily from investment income-net. Such dividends are paid monthly.
Dividends from net realized capital gain are normally declared and paid
annually, but the Fund may make distributions on a more frequent basis to comply
with the distribution requirements of the Internal Revenue Code. To the extent
that net realized capital gain can be offset by capital loss carryovers, it is
the policy of the Fund not to distribute such gain.
(D) FEDERAL INCOME TAXES: It is the policy of the Fund to continue to qualify
as a regulated investment company, which can distribute tax exempt dividends, by
complying with the applicable provisions of the Internal Revenue Code, and to
make distributions of income and net realized capital gain sufficient to relieve
it from substantially all Federal income and excise taxes.
The Fund has an unused capital loss carryover of approximately $29,996,000
available for Federal income tax purposes to be applied against future net
securities profits, if any, realized subsequent to May 31, 1996. If not applied,
$2,069,000 of the carryover expires in fiscal 2003 and $27,927,000 of the
carryover expires in 2004.
<PAGE>
Dreyfus California Tax Exempt Bond Fund, Inc.
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS (Unaudited) (continued)
NOTE 2--Management Fee and Other Transactions With Affiliates:
(A) Pursuant to a management agreement ("Agreement") with the Manager, the
management fee is computed at the annual rate of .60 of 1% of the value of the
Fund's average daily net assets and is payable monthly. The Agreement provides
that if in any full fiscal year the aggregate expenses of the Fund, exclusive of
taxes, brokerage, interest on borrowings and extraordinary expenses, exceed
11/2% of the value of the Fund's average net assets, the Fund may deduct from
the payments to be made to the Manager, or the Manager will bear such excess
expense. There was no expense reimbursement during the period ended November 30,
1996.
(B) Pursuant to the Fund's Shareholder Services Plan, the Fund reimburses
Dreyfus Service Corporation, a wholly-owned subsidiary of the Manager, an amount
not to exceed an annual rate of .25 of 1% of the value of the Fund's average
daily net assets for certain allocated expenses of providing personal services
and/or maintaining shareholder accounts. The services provided may include
personal services relating to shareholder accounts, such as answering
shareholder inquiries regarding the Fund and providing reports and other
information, and services related to the maintenance of shareholder accounts.
During the period ended November 30, 1996, the Fund was charged an aggregate of
$419,051 pursuant to the Shareholder Services Plan.
The Fund compensates Dreyfus Transfer, Inc., a wholly-owned subsidiary of the
Manager, under a transfer agency agreement for providing personnel and
facilities to perform transfer agency services for the Fund. Such compensation
amounted to $208,824 during the period ended November 30, 1996.
(C) Each director who is not an "affiliated person" as defined in the Act
receives from the Fund an annual fee of $4,500 and an attendance fee of $500 per
meeting. The Chairman of the Board receives an additional 25% of such
compensation.
NOTE 3--Securities Transactions:
The aggregate amount of purchases and sales of investment securities,
excluding short-term securities, during the period ended November 30, 1996,
amounted to $500,027,854 and $467,584,914, respectively.
At November 30, 1996, accumulated net unrealized appreciation on investments
was $59,927,059, consisting of $66,782,018 gross unrealized appreciation and
$6,854,959 gross unrealized depreciation.
At November 30, 1996, the cost of investments for Federal income tax purposes
was substantially the same as the cost for financial reporting purposes (see the
Statement of Investments).
<PAGE>
Dreyfus California
Tax Exempt Bond Fund, Inc.
200 Park Avenue
New York, NY 10166
Manager
The Dreyfus Corporation
200 Park Avenue
New York, NY 10166
Custodian
The Bank of New York
90 Washington Street
New York, NY 10286
Transfer Agent &
Dividend Disbursing Agent
Dreyfus Transfer, Inc.
P.O. Box 9671
Providence, RI 02940
Printed in U.S.A. 928SA9611
